Spreads tumble as manager raises its second CLO through Citi

By Sayed Kadiri

Friday, August 03, 2012

A new $408.75 million CLO launched yesterday has got market participants talking with spreads having gapped in considerably across the stack

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Comment by: Anonymous. Posted 11 years ago [2012-08-04 16:39:35]

Explanation below is fascinating - does the market truly now punish deals that are managed?! The old (existing?) story is that "managers add value" in excess of the management fee through their shrewd ability to trade out of deteriorating credits. But have managers abused their discretion to such a great extent in naked pursuit of higher fees for themselves that the market now prices them as a negative feature?! What a great panel question for the next Creditflux Conference!

Comment by: Anonymous. Posted 11 years ago [2012-08-03 15:29:18]

FYI this deal is completely static. That is why it priced so tight. Triple spreads are still around 150 for regular deals.

Comment by: Anonymous. Posted 11 years ago [2012-08-03 14:17:40]

all notes sold at discount to avail excess spread for equity?

CLOs

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